The "adults in the room" are clueless. So maybe China is behind the rise in US long rates.

<p>The relentless plunge in US Treasuries has left a trail of bewildered investors and analysts in its wake. Bond markets are often said to be the 'adults in the room'. Not this time. </p><p>Here is an interesting piece asking if maybe China is behind the rise in US long rates:</p><ul><li>Growth in China is slowing for cyclical and structural reasons</li><li>Chinese exports to the US are lower</li><li>As a result, China has fewer dollars to recycle into Treasuries</li><li>In fact, China has been selling $300 billion in Treasuries since 2021, and the pace of Chinese selling has been faster in recent months, </li></ul><p>Link is here for more:</p><ul><li><a href="https://apolloacademy.com/is-china-the-source-of-higher-us-long-rates/" target="_blank" rel="nofollow">The bottom line is that the cost of capital will likely stay permanently higher for reasons that have little to do with the business cycle</a></li></ul><p>—</p><p>Higher rates, <a href="https://www.forexlive.com/news/us-house-of-representative-in-chaos-patrick-mchenry-is-new-speaker-temporary-20231003/" target="_blank" rel="follow">chaos in the House</a>. Someone won't be too bothered by all this. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.